According to Site Selection magazine, the business climate in North Carolina still remains among the best across the country.

Georgia tops the list, followed by Louisiana and North Carolina.

The Tar Heel State dropped from its annual ranking from 2nd last year to 3rd this year in the magazine’s 2014 feature on the “Top U.S. Business Climates.”

On the other hand, South Carolina, who ranked 7th last year, garnered the 6th spot in the 2014list.

The “Top U.S. Business Climates” rankings were based on a survey conducted by Site Selection on various real estate executives asked regarding their own personal experiences as site selectors.

The data also included private capital projects, which involve $1 million or more investments, 50 or more new employment opportunities, along with 20,000 square feet or more of new constructions.

Furthermore, the magazine claims that one of the most important criteria behind the choosing of locations were the straightforwardness of getting permits and other regulatory processes, existing modes of transportation, available workforce, costs and supply of land and buildings, availability of utility infrastructure, state and local taxes, incentives provided, access to better education, as well as legal climate.

Below are the top 10 states based on Site Selection’s “Top U.S. Business Climates:”